Repossession levels have rocketed
September 23, 2008
There has been a huge jump in the level of repossessions in the UK since the start of this year, according to a recent report. Since January of this year repossession levels have jumped by 41%. There are a number of reasons why many homeowners may have fallen so far behind with their mortgage repayments, resulting in this increase in repossession levels. This includes higher living costs and bills, which are impacting on household finances, and also the fact that many people have been coming off cheap fixed rate deals and having to switch to far more expensive mortgage deals.
An official from the Council of Mortgage Lenders said that the situation needed to be kept in perspective, stating: ‘The number of people facing difficulty needs to be kept in perspective. The good news is that most people are coping well and continuing to pay their mortgages in full, despite the higher costs of food and fuel and the higher mortgage rates now prevailing in the market for those coming off cheaper original deals.
But it is inevitable that more borrowers’ coping strategies will come under pressure in current conditions than in the unusually benign years of the last decade. That’s why lenders, government and the advice sector are working closely together to minimise the impact on borrowers.’
However, despite these comments the CML has predicted that repossession levels are set to continue rising over the course of this year, and by the end of this year may have hit the 45,000 mark. Compare to the last six months of last year repossession levels have already climbed by 41% and compared to the first six months of last year repossession levels have rocketed by 48%.
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